If a certain country’s currency is expected to appreciate, the premise is that the country’s currency is an international currency that can be circulated and freely exchanged. If not, it will be relatively troublesome.
First of all, in anticipation of currency appreciation, foreign funds enter to purchase real estate to preserve and increase its value. For example, 1 million U.S. dollars is exchanged for 1 million of this country’s currency and buys 1 million of housing.
Secondly, due to the capital A large amount of inflow has caused housing prices to rise, and a house worth 1 million yuan has risen to 1.1 million yuan
Thirdly, due to currency appreciation, 1 million yuan of currency can already be exchanged for 1.1 million yuan in U.S. dollars
Then sell the house to get 1.1 million yuan in local currency, 1.1 million yuan * 1.1 = 1.21 million yuan. This is the result, entry with $1 million, a 21% profit through currency appreciation and housing price increases.